The Central Vigilance Commission (CVC) noticed that as per the instructions issued by the Indian Bank's Association (IBA) dated 25.04.2011, TA/DA was not permissible to the retired officer / employees for attending the departmental inquiry as Defence Assistants or Defence witnesses of the Public Sector Banks. As the IBA's guidelines were in violation of Ministry of Finance, GOI instructions and Commission's guidelines, the Commission vide letter dated 27.02.2015 advised Department of Financial Services (DFS) to examine the issues and to take corrective steps to remove anomalies and to ensure that IBA circular is in line with the Government of India and Commission's guidelines.

2. DFS has reported that the IBA, vide letter dated 19.11.2015 has since reviewed and revised the scheme and issued comprehensive instructions regarding reimbursement of TA/DA to serving/retired employees attending departmental/criminal proceedings as Charged Officer, prosecution/Defence witness etc. As per the revised circular, now payment of TA/DA to Defence Assistants /Defence Witnesses (both serving and retired) attending departmental inquiry and criminal proceedings before Court would be allowed.